Thursday, March 14, 2013

16 Ways to Avoid a Haircut, Post 2

This is the second in an eight part series on how to resist price concession requests. Each two new tips will be posted each weekday for eight days.

Studies show that 74% of price cuts are started by sales
people, not customers. In legal services, that percentage may be a lot higher!
Lawyers agree to discounts on their hourly rates, often without a hint of a
prospect’s objection to the hourly rate. Here are some proven strategies for
resisting discounts and increasing profits.

3. Use testimonials. The experience of peers is a powerful
endorsement of value. Before succumbing to rate cuts, share the testimonials of
similar companies you have worked with to demonstrate the value of your
services. You can delay a rate negotiation, often to your benefit, by asking
the prospect to speak to past and current clients prior to continuing the
discussion on rates. Loyal clients will validate your services and provide
further ammunition to resist price cuts. Peer companies held in high esteem by
the prospect have the greatest testimonial influence. But choose you references
carefully and prepare them in advance.

4. Sell your competitive advantage, not your rates. What
sets you apart from your competition? Do you have a unique set of skills or
experience? Unique technologies? Particular ‘clout’ or access to persons of
influence? Use these differentiators to reinforce the value of your services.
Ask prospects questions which highlight the value of these attributes to ensure
the full value you provide clients is factored into the analysis.

It goes without saying, if you would like to talk about training your lawyers in resisting pricing concessions, please give me a call. It costs nothing to talk.